The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
KUALA LUMPUR (June 9): Bursa Malaysia ended lower across the board, in tandem with regional peers, extending its losses for the sixth consecutive day, amid the negative sentiment surrounding the region.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) closed 14.15 points weaker at 1,509.71 from Wednesday’s close of 1,523.86.
The benchmark index, which opened 0.55 of-a-point easier at 1,523.31, moved between 1,508 and 1,526.83 throughout the trading session.
On the broader market, losers outpaced gainers 601 to 315, while 394 counters were unchanged, 964 untraded and 10 others suspended.
Total turnover decreased to 2.88 billion units worth RM2.06 billion compared with 3.26 billion units worth RM1.96 billion on Wednesday.
A dealer said Bursa Malaysia opened easier on Thursday morning and continued to trend lower till the end of the morning session, weighed down by persistent selling in heavyweight stocks.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng told Bernama that key regional indices closed broadly negative as investors remained worried about potential recession in the US, Europe and other regional countries caused by interest rate hikes.
He said the sentiment was further exacerbated by the Organisation for Economic Co-operation and Development (OECD) warning that the world economy will pay a “hefty price” for the war in Ukraine including weaker growth, stronger inflation and persistent damage to supply chains.
“Back home, the FBM KLCI has broken the 1,550 and 1,520 supports in just a few trading days and is inching towards the critical 1,500 support level.
"We reckoned the local market would face some headwinds due to lack of buying support amid the heightened regional market volatility. As such, we expect the benchmark index to hover between the 1,500 to 1,515 range towards the weekend," he added.
Regionally, Singapore’s Straits Times Index shed 0.66% to 3,204.38, Japan’s Nikkei 225 gained 0.04% to 28,246.53, Hong Kong’s Hang Seng eased 0.66% to 21,869.05, South Korea’s KOSPI slid 0.03% to 2,625.44, and China's SSE Composite Index reduced 0.76% to 3,238.95.
Among the heavyweights, Malayan Banking Bhd eased four sen to RM8.80, Petronas Chemicals Group Bhd fell 21 sen to RM9.64, IHH Healthcare Bhd slipped 13 sen to RM6.40 while Public Bank Bhd and CIMB Group Holdings Bhd were flat at RM4.57 and RM5.07 respectively.
Of the actives, Yew Lee Pacific Group Bhd added 1.5 sen to 30.5 sen, EA Holdings Bhd and Green Packet Bhd eased half-a-sen each to one sen and seven sen respectively, LGMS Bhd declined 13 sen to 71.5 sen, while Dynaciate Bhd was flat at 14.5 sen.
On the index board, the FBM Emas Index was 91.31 points lower at 10,841.68, the FBM Emas Shariah Index dropped 124.63 points to 11,108.75, the FBM 70 declined 65.92 points to 13,226.19, the FBM ACE decreased 64.16 points to 5,169.94, and the FBMT 100 Index slipped 87.81 points at 10,534.5.
Sector-wise, the Financial Services Index trimmed 57.4 points to 16,521.71, the Plantation Index tumbled 146.41 points to 7,665.37 and the Industrial Products and Services Index was 2.22 points easier at 194.04.
Main Market volume decreased to 1.66 billion shares worth RM1.7 billion against 1.71 billion shares worth RM1.55 billion on Wednesday.
Warrants turnover slipped to 300.45 million units valued at RM55.52 million versus 539.76 million units valued at RM94.67 million on Wednesday.
ACE Market volume reduced to 923.57 million shares worth RM302.22 million from 1.01 billion shares worth RM317.92 million previously.
Consumer products and services counters accounted for 195.19 million shares traded on the Main Market, industrial products and services (618.82 million), construction (56.93 million), technology (86.06 million), SPAC (nil), financial services (63.98 million), property (128.63 million), plantation (33.28 million), REITs (9.75 million), closed/fund (4,000), energy (220.71 million), healthcare (96.87 million), telecommunications and media (88.48 million), transportation and logistics (31.69 million), and utilities (24.78 million).
Source: The Edge
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